These days it is easier than ever for foreign entrepreneurs to enter the European market and act as a European company. Should you need any help entering the European market when it comes to fiscal matters, Freightways’ fiscal representation offers a solution.
Freightways Fiscal Representation specializes in all the bureaucratic aspects required for your international supply chain flow. We represent foreign companies for both fiscal (VAT) and Customs requirements.
As a foreign entrepreneur exporting goods to the European Union, it is required that you have a European VAT-number or that you import the goods under the VAT number of your representative. This is dependent on the form of fiscal representation you choose to use.
For both types of fiscal representation a license is needed as well as a customer’s statement officially appointing the fiscal representative. Freightways will of course be able to assist you with this should you need it.
Fiscal Representation "limited" and "general"
Under both types of fiscal representation Freightways takes care of the import of your wares and the VAT declaration. There are two major differences between general and limited representation:
Under limited representation you are ONLY able to sell B2B and your goods will be imported using Freightways’ VAT number.
Under general represenation you are able to sell both B2B and B2C and Freightways will request a Dutch VAT number of your own.
Article 23
As your representative we can request an Article 23 with the Dutch Tax Services on your behalf. This means you are not required to pay VAT immediately upon import. The Netherlands is one of only few countries where this construction exists.
Importer of Record (IOR)
An Importer of Record (IOR) is the party responsible for ensuring that imported goods comply with all customs and legal requirements of the country of import. In a partnership with Freightways that country would be the Netherlands. When Freightways acts as your fiscal representative you will be your own IOR and we will assist you in making sure all documentation is correct and all legal requirements are adhered to. Together with one of our trusted customs brokers we can make sure your goods are imported into the Netherlands securely and legally.
One Stop Shop
On the first of July 2021 VAT obligations of B2C e-commerce sellers have been drastically reformed. This was done in order to battle fraud and boost cross-border online sales. Three major changes have been introduced:
E-commerce sellers are now able to report all their Pan-EU distance sales on a single VAT return in their home country. In the past it was necessary to have multiple VAT registrations across the EU. This is no longer the case.
The VAT exemption for small parcels valued under €22 has been removed.
Online marketplaces have become deemed suppliers when they facilitate certain B2C cross-border transactions of their third party sellers. They are then responsible to collect, report and remit the VAT due from the customer.
